Russia saves 4 billion dollars thanks to the boycott

Published: 2017-02-16 Views: 21

Core Tip: Turkish exports are on the rise again since the boycott was lifted.

Turkish exports are on the rise again since the boycott was lifted. The regions of Antalya, Burdur and Isparta are having a flying start to the year with 130 million dollars of exports in January. This is 30% more than in the same month a year ago. Russia is still boycotting a number of crops, including cauliflower, broccoli, apples, pears, strawberries, tomatoes, onions and cucumbers. The growth in exports can't just be attributed to the opened Russian border. Other export markets also showed growth. The Turks are trying to diversify their export and look for markets in Europe and the Middle East, among others.
Iranian exports growing
The trade between Russia and Iran is blooming due to the boycott. Last year the trade between the countries grew by 80%. Iran already exported fruit and vegetables to Russia, but thanks to the 'green corridor', this trade has become easier. The country is also investing in the export of products from the other boycotted sectors.

Russia saves, Italy pays
Russia has saved 4 billion dollars through the boycott. This is according to the Russian minister of agriculture. "This is what we call an import subisidy: Russian products replacing products that used to be imported," according to the secretary of state. Previously, the Kremlin calculated that Russia has been able to reduce the costs food imports from 60 billion dollars to 20 billion dollars since the boycott was announced in 2014. Growth is expected for the fruit and vegetable sector in production, thanks to new greenhouses and orchards. The area of greenhouses in Russia is to rise steeply over the coming five years by almost 2,000 hectares.

The bill is bigger for Italy. The cost of the sanctions that the EU and the US placed on Russia cost the country 4 billion Euro and 80,000 jobs. In 2013 Italy was the second largest European exporter to Russia. The blows to the economy were also caused by the devaluation of the rouble and the low oil price.